2014 (12) TMI 1006

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..... s an element of supply of wagons to the railways. The wagons are exclusively used for transporting the appellant’s goods and because the appellants have invested in the wagons they get a discount in the transportation. The transaction is similar to the case where a person may supply a crane to the service provider who mines ores for him and thereafter get some discount in the cost of mining. Can i .....

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..... the Respondent : Mr. S. Teli, A.R. ORDER Per : B.S.V.MURTHY The appellants had opted for the scheme of Liberalized Wagon Investment Scheme offered by railways and as a result of exercising such option, the appellants got 15% discount in transportation charges charged by railways. Treating this 15% discount as consideration which was received in the form of concession/rebate in the .....

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..... ration in the form of freight concession in lieu of providing the service of supply of wagons for use. The Commissioner relied upon the decision in the case of MSPL Ltd. Vs. CCE Belgaum [2012 (25) S.T.R. 90 (Tri-Bang)). Extended period has been invoked for confirming the demand on the ground that the appellants had suppressed their activity and did not comply with the procedures. 3. The learned .....

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..... service receiver and the provider between the railways and the appellant in this case. The concession given by the railways is only a discount and there is no supply of wagons by the appellants to the Indian Railways. 4. Heard the learned A.R. also who submits that the investments on the wagons have been made by the appellants and wagons have been handed over to railways for transportation and .....

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..... would be the additional consideration flowing from the receiver of service to the provider of service in the form of depreciation and interest element on the crane and it cannot be said that it amounts to SOTG Service. We are not convinced at this stage that revenue has been able to make out a case for levy of service tax under SOTG service against the appellant. Accordingly, the requirement of p .....

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